US targets India with tariffs over Russian oil purchases

The United States is set to impose a 25 percent tariff on Indian goods, along with additional import taxes, citing India’s continued purchase of Russian oil and military equipment. President Donald Trump announced the decision on Wednesday, framing it as a response to India’s economic ties with Moscow, which he claims are indirectly funding Russia’s war in Ukraine.

The new tariff regime is scheduled to take effect Friday and is part of a broader shift in U.S. trade policy. Despite the sharp penalties, Trump said negotiations with India are still ongoing.

Experts say the impact could be significant, particularly for India. Katherine Hadda, a senior associate at the Center for Strategic and International Studies and a former U.S. diplomat in India, noted that the U.S. is India's largest export market.

“Our trade deficit with India is about $46 billion," Hadda said. "India exports twice as much to us, while they’re not even in our top ten export destinations. So this agreement matters more to India than to the United States.”

India’s energy dependence is also a key factor. “India imports about 80 percent of its fossil fuels," Hadda explained. "They’ve already lost access to Iranian and Venezuelan oil due to sanctions, so switching sources won’t be easy.”

The White House has positioned the tariffs as a sign of Trump’s negotiating strength. However, critics warn the move could raise inflation and slow economic growth, intensifying trade tensions just as global markets remain fragile.